m

er as
FACULTY OF BUSINESS MANAGEMENT

co
eH w
BA243- BACHELOR OF BUSINESS ADMINISTRATION (HONS) HUMAN RESOURCE

o.
MANAGEMENT
rs e
ou urc
Course: Employment Act 1955
o

Course Code: HRM581

aC s
v i y re

Assignment: Indemnity Exercise Q1

Group: BA2433L
ed d
ar stu

Nur Shahera Wahida binti Ahmad Affendi 2019848348

Syahirah Atiqah binti Shafahmy 2019643234
Nur Aishah Solehah binti Ahmad Sofian 2019805606
sh is

Fatin Nurul Adilah binti Ridzuan 2019627388

Nur Izzatuladawiyah binti Mohd Faudzi 2019612106
Th

Nur Fatimah Zahra binti Zaidi 2019415668

Clarice Elsa Alan 2019612592

Prepared for:
Madam Mazlina binti Ahmad Zayadah

INDEMNITY EXERCISE: QUESTION 1

This study source was downloaded by 100000802782223 from CourseHero.com on 11-01-2021 23:05:55 GMT -05:00

https://www.coursehero.com/file/77058033/INDEMNITY-ASSIGNMENT-Q1docx/
 Question: Ah Chong resigned from the company after working for 3½ years. His last day is
on 21 March 2016 with a salary of RM2200 per month. Ah Chong has served 3 weeks’ notice
of resignation only because his new employer wants him start as soon as possible. Calculate
the net wages payable.
1.0 ISSUE
i. Last day on 21st March 2016
ii. Length of service 3½ years
iii. Notice 3 weeks of resignation

2.0 SOLUTION
Ah Chong’s last day is on 21st March 2016. As stated in Section 60I(1A) under interpretation
state that where an employee is employed on a monthly rate of pay shall be calculated

m
er as
according to the formula:

co
eH w
Monthly rate of pay = RM2200

o.
26 26
rs e
ou urc
= RM84.62 (Ah Chong daily rate)
Monthly payable = RM84.62 x 21
o

= RM1,777.02
aC s
v i y re

However, Ah Chong been working with the company for 3½ years now making him more
than 2 years. According to section 12(2) of EA 1955, Ah Chong should fall under section
ed d

12(2)(b) whereby six weeks’ notice if he has been so employed for two years or more but less
ar stu

than five years on such date. In this case, he gave 3 weeks’ notice instead of 6 weeks and the
indemnity that he would need to pay is equal to less 3 weeks since he left the company earlier
than he should be. Thus, the calculation would be:-
sh is

3 weeks’ notice period = 7 days per week x 3 week = 21 days

Th

The period of 3 weeks is from 21/03/2016+21 days= 10/04/2016

The indemnity amount he must pay is:
(i) 21/03/2016-31/03/2016 = 11 days = (RM2200/31) X 11 = RM780.65
(ii) 01/04/2016-10/04/2016 = 10 days = (RM2200/30) X 10 = RM733.33
(iii) Total indemnity payable= RM780.65+RM733.33 = RM1,513.98
Thus, Ah Chong net wages payable would be RM2,200.00-RM1,513.98(indemnity) =
RM686.02
CORRECTION

This study source was downloaded by 100000802782223 from CourseHero.com on 11-01-2021 23:05:55 GMT -05:00

https://www.coursehero.com/file/77058033/INDEMNITY-ASSIGNMENT-Q1docx/
 m
er as
co
eH w
o.
rs e
ou urc
o
aC s
v i y re
ed d
ar stu
sh is
Th

This study source was downloaded by 100000802782223 from CourseHero.com on 11-01-2021 23:05:55 GMT -05:00

https://www.coursehero.com/file/77058033/INDEMNITY-ASSIGNMENT-Q1docx/
Powered by TCPDF (www.tcpdf.org)